What is swot matrix? »Its definition and meaning

Matrix Foda is the acronym for an analysis methodology that aims to provide a detailed view of the internal and external structure of a company or project. Most of the time, SWOT analysis is carried out following 4 specific steps, such as internal and external study, preparation of the matrix and development of a complete strategy. Its acronym SWOT correspond to the words Strengths, Opportunities, Weaknesses and Threats.

What is SWOT matrix

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Also called SWOT matrix or SWOT analysis, it is an analysis that is used in a company or project to evaluate its conditions to carry out a task and what factors could hinder it. This, after being applied, allows a plan of strategies to be drawn up to optimize the scenario of the object analyzed.

The SWOT (Strenghts, Weaknesses, Opportunities, Threats) matrix was devised by consultant Albert S. Humphrey in the 1970s during research. A matrix must be outlined (online there are models of SWOT matrix template), listing in a SWOT table each one of the strengths, opportunities, weaknesses and threats of the institution or project.

Strengths

They are the internal characteristics of the business that allow it to be promoted and help to meet the goals set. This refers to the internal characteristics of the organization, in which external factors do not intervene, such as its resources and training, ability to adapt, among other attributes.

Opportunities

It refers to events or characteristics external to the business that can be used in favor of the entrepreneur to guarantee the growth of his company. These must be recognized by the organization in order to obtain advantages over the competition.

Weaknesses

They are the internal aspects that in one way or another do not allow business growth or that hinder the fulfillment of the objectives set. These put the company in a disadvantageous position, and may be a lack of resources, skills or strategies.

Threats

They are the external events of the business, in most of the times uncontrollable by the owner and staff of the analyzed company. The best example of them is the competition.

Uses of the SWOT matrix

• It allows evaluating the situation in which a company or project finds itself.
• It allows you to create strategies that will allow you to stay afloat in the future, as well as highlight the best-developed characteristics, obscuring the defects detected with the study.
• It allows defining the internal and external aspects that favor or inhibit the proper functioning of the company.

Examples of the SWOT matrix

Personal SWOT

Example of a student:

• Strengths: he knows how to prioritize his homework, is punctual, methodical and gets good grades.
• Opportunities: to attend courses, congresses and take a job as an intern.
• Weaknesses: he does not have many contacts, he does not have experience in the field and he is not used to teamwork.
• Threats: Your career is in high demand, your location does not present many opportunities, and your competition is high.

Business SWOT

Business "Manuela y Asociados CA": Sale of spare parts for cars of different brands, with a location close to dealerships, with business hours from 9am to 12pm and from 2pm to 4pm, with a vendor, a cashier and a janitor, and they sell from 200 to 250 articles daily. Your analysis would be:

Strengths: possess all the items needed by the public.

Opportunities: it is located near dealerships of brands that they have for sale.

Weaknesses: it has few personnel for the daily demand, and a reduced work schedule to cover the possible sales that can be executed in one day.

Threats: around you are several spare parts houses with sales of the same spare parts and some with lower prices.

SWOT Matrix Frequently Asked Questions

What is the SWOT matrix?

It is an analysis method that consists of pointing out the positive and negative aspects of an organization, as well as those of a project, both those that can be controlled and transformed (internal), and those that cannot (external).

How is the SWOT matrix constructed?

A SWOT table should be used in which the strengths, opportunities, weaknesses and threats of the object of analysis are written in one column.

What is the SWOT matrix of a company?

It is carried out by determining the resources available to the company, the personnel, the training, deficiencies, among others, and the position it has in the market and how external scenarios affect it.

What is a personal SWOT and how is it done?

It is a self-assessment that is done to determine the possibility of obtaining personal improvement by determining the strengths and weaknesses to meet a goal. It is done by doing a self-analysis of the strengths and weaknesses that the person possesses, and recognizing the opportunities and threats that surround him before the objective he wishes to achieve.

What is the SWOT matrix used for?

To take measures regarding the improvement of a situation that surrounds an organization or to undertake a project, through an analysis to have a clearer vision of the reality that it may face when it is executed.